By Magdalene Wanja - Reporter
Kenya, 11 August 2026 — The Central Bank of Kenya has held its benchmark lending rate steady at 8.75%, resisting pressure to adjust borrowing costs amid global economic turbulence.
In its official communication after the Monetary Policy Committee (MPC) meeting, the CBK said: “Having considered these developments, the Committee concluded that the current monetary policy stance, with the Central Bank Rate unchanged at 8.75 per cent, remains appropriate to ensure that inflation expectations remain anchored within the target range, and the exchange rate remains stable.”
The MPC flagged risks from elevated oil prices and slowing global growth, projecting world output to ease to 3.0% in 2026, down from 3.5% last year.
Governor Kamau Thugge reinforced the cautious stance, noting: “The MPC observed the need to continue monitoring the evolution of global oil prices and any second-round effects on inflation, as well as other developments in the global and domestic economies, and stands ready to take further action as necessary in line with its mandate.”
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Global inflation is forecast to rise to 4.7% in 2026, up from 4.1% in 2025, driven by higher energy and transport costs.
The CBK warned that inflation in major economies remains above target due to sticky core prices.
The Committee will reconvene in October 2026, with markets watching closely for any policy shifts should external shocks intensify.